Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

HBOS Lloyds TSB rival plan 'smacks of egos'

12 November 2008 / by Rebecca Sargent

Ex-bank chiefs Sir Peter Burt and Sir George Mathewson have come under further fire following their 'arrogant' bid to bring an end to the Lloyds TSB, HBOS merger.

The UK's largest union, Unite has expressed its fears over the pair's motives and the potential consequences of their actions.

The two wrote to HBOS chairman, Dennis Stevenson last week calling for an end to the merger which could see HBOS through the financial crisis and proposed that they should takeover as top dogs at the banking group.

Mr Stevenson has since replied, dismissing their plans, and Unite general secretary Derek Simpson said yesterday: "Unite has serious doubts about the plans by Sir Peter Burt and Sir George Mathewson and their motives.

"They have failed to come up with any concrete proposals or any money, and it is irresponsible of them to threaten the proposed merger between HBOS and Lloyds TSB. We have serious concerns that the extreme arrogance of these two individuals will lead to the nightmare scenario in which HBOS collapses."

Even Gordon Brown, who waivered competition rules so that the bank merger could go ahead, has referred to Lloyds TSB as the only serious bidder, dismissing Sir Peter and Sir George's attempts.

However, it has been reported that they are not the only rivals in the pipe line as rumours are rife that the Bank of China is in early talks over the backing of a rival bid, despite Gordon Brown announcing that there is only one realistic option.

Unite's main concern over rival HBOS bids is for the staff, Mr Simpson added: "The future of these important financial institutions is now at stake. The proposal by these two individuals merely smacks of egos and special interest rather than the livelihoods of our members who work at both HBOS and Lloyds TSB."

HBOS is due to issue a circular to its shareholders in the next few days, ahead of the meeting in mid-December which could decide the banking group's fate.